The Methods for Lowering of Prices Walmart - Assignment Example

The items available in the departmental outlets are on discount in comparison to their competitors. The retail corporation has designed various mechanisms that have a positive influence on the demand for goods by consumers. One of the known methods utilized to lower the prices of goods is that of the value of the day. The mechanism reduces the price of a pair or more of selected items each day of business of the corporation. Consumers are at the privilege to purchase different items in two or more at discounted prices on the working days of the departmental outlets.

Returned items and goods whose shelf life is about to elapse are sold at lowered prices in bulk as well. In turn, impulse buying by the customer is evident. The wastage of such goods is then relieved from the business. The location of these goods is the cashier’s stand that the customer accesses every time. The location plays a vital role in effortless accessibility and capturing of the individual's attention. The allocation of coupons for items to the customers after every visit to the retailer promotes moneyless or little money in use when purchasing goods.

Consumers collect as many coupons as possible over time. The coupons purchase bulk items when presented to the cashier. There are instances where the buyer is relieved from using money at all where the coupons available satisfy the number of goods. The other outcome is paying extra for the goods where the items shopped exceed the value of the coupons. On both accounts, a negligible or low price on items purchased respectively is evident. The mentioned methods for lowering prices are a future cost anticipated by the business on transactions based on established goals and forecasts (Boyd, 23).

Budgeted costs define the cost incurred for discounting and couponing to the business. It is safe to say the management should utilize the method of price lowering. The discounts allow for increased purchasing power on the consumer's end. Goods bought are more in comparison to anticipated purchasing by the consumer at a given time. The mechanisms attract more consumers for this reason. The business creates a loyal large customer base. Over time the business can foot the budgeted costs incurred. Increased demand for products is a merit on its own. Wal-Mart is reputable for quality goods.